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I am curious ... why didn't you mention their huge drop in assest? They were once over a billion?

Jane

Good read and exactly what many credit unions are doing. THIS IS A MISTAKE. CU’s feel that by pulling all their parts into the boat, cutting pieces off, leaving it in the harbor, all while desperately hoping when the tide goes out the boat will no touch the ground. This cost reduction and increase in ROA is directly related to a decrease in Member Value. Closing branches and reducing hours -- how is that strategy focused on the members? It would be nice to see an article on a credit union that is pushing forward adding member facing value products and services and picking up all the lost souls from the demise of the banking sector. But its much easier to cut staff, close branches, increase fee’s, etc – versus actually pushing your executive team with a vision to increase member value added products. ROA has become the beacon of success in an industry that was built on Service. And we wonder way 4,000 CU’s have closed in the past 10 years with many more to come. Interesting

Anonymous

You constantly see quotes from Larry Sharp about running "lean and mean". Truth be told, Credit Unions were greedy- giving cheap loans to essentially anyone that could fog a mirror. They are now in trouble because of this mindset. Arrowhead Motors anyone?

This Credit Union is purely trying to stay alive. They are like a sinking ship that is dumping cargo overboard just to stay afloat longer.

Members and employees alike are lead to believe that senior management knows what they are doing and making sound financial decisions. They clearly do not because if they knew what they were doing in the first place they wouldnt need to sell off assets, close locations, and lay off over 30% of their staff.

DONT BE FOOLED!

Sue

Arrowhead was put in a tough situation: grow and become less stable or shrink and become more stable. This was a smart move – sure up their reserves and reclaim their status as a safe and sound institution. Having all of the branches in the world won't make much of a difference if they are boarded up. Hats off to Arrowhead for making a tough choice that, in the long run, will help it protect its members.